Try CIPS Supplier Relationships (L4M6) Exam Questions

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If you can pass the Supplier Relationships (L4M6) exam, you will be able to analyse the dynamics of supplier relationships, examine the processes and procedures for working with stakeholders and appreciate the concept of partnering. Our professionals have created a series of Supplier Relationships (L4M6) Exam Questions for candidates who want to ensure that they receive the maximum possible score on the actual exam. FreeTestShare provides L4M6 practice exam to help you prepare for the L4M6 certification exam. All L4M6 exam questions are syllabus-based, and they will help you pass the L4M6 exam quickly.

To put your skills to the test, try L4M6 free practice questions!

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1. Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money .

What should Fred do?

Hold an open competition

Contact current suppliers to try and get a good deal

Invite known suppliers to bid for the contract

Put together a business case to make the product in-house

2. A doctor's surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company .

What is the Manager's main motivation for doing this?

The supplier is an expert in their field

This will result in economies of scale

This will free-up internal resources

This will result in cost-savings

3. The Pareto Principle is sometimes also known as what?

Five Forces

JIT

ABC Analysis

Cost Engineering

4. In an oliogopy market, what would a regulator do?

prevent price fixing and collusion

stop the market becoming a monopoly

ensure value for money for buyers

ensure health and safety standards

5. Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew’s cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier’s product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier’s performance.

Is this the correct thing to do?

Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer

Yes- partnership sourcing will improve sales figures

No- Andrew should use an alternative supplier

No- Andrew should outsource the vanilla extract.

6. Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it. He doesn’t think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?

Cost Analysis

Make vs Buy Analysis

Force Field Analysis

Value Engineering Analysis

7. Phone Maker Incorporated is a manufacturer of mobile phones. It is considering investing in a partnership with its supplier of batteries and circuit boards as it wishes to produce new models of its phone more regularly .

What is the main driver for Phone Maker Incorporated?

Cheaper costs

Changes in the marketplace

Better quality products

Reduced product life-cycles

8. A restricted market is a market where there are only a small number of capable and competent suppliers .

Which of the following is not a reason for a marketplace to be restricted?

Low levels of profitability

High barriers to entry

Strong governmental regulation

The product is easy to source elsewhere

9. Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years’ time. Should IPR be included into a contract between partners?

Yes- IPR should always remain with the buyer- this will protect those rights

Yes- IPR is a valid concern for both parties but will survive the termination of the agreement

No- a separate legal agreement should be created to cover IPR

No- a contract is not necessary if it is a partnership.

10. Which of the following are considered ‘wastes’ which can be removed from a business? Select THREE.

Over-processing

Stockout

Equity

Transportation

Inventory

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11. Which of the following are valid strategies for dealing with conflict? Select THREE

Competing

Collecting

Contesting

Compromising

Collaborating

12. ‘tail spend’ is a common category used in procurement and describes a category of items .

What characteristics do theses items have?

High value, low volume

High value, high volume

Low value, high volume

Low value, low volume

13. Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender .

What should be Mandy’s first step?

Run an open competition C send out an ITT

Run a restricted competition C send out a PQQ

Run an open competition C send out a RFQ

Run a restricted competition- send out a RFI

14. Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

yes- it is important to develop all relationships

yes- this will improve efficiencies for the buyer

no- supplier development should only be done with strategic suppliers

no- supplier development should only be done with tactical suppliers

15. Which of the following is not a type of tender process used in the Public Sector?

Restricted

Competitive Procedure with Negotiation

Competitive Dialogue

Unrestricted

16. Varying levels of commitment is one reason why many partnerships fail .

Why is this?

It can lead to a lack of trust

One party doesn’t fulfil their KPIs

Sufficient time and resources are put in

Less profit is made.

17. Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender .

What purpose would this serve?

To ensure suppliers know the deadline for tender submission

To ensure suppliers can find the opportunity

To ensure more suppliers bid for the tender

To ensure only qualified suppliers bid for the tender

18. The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?

supplier positioning

cost analysis

relationship spectrum

cost engineering

19. David is sourcing a new cleaning contract as he is not impressed with his current cleaning company’s performance. He believes that his current supplier has been overcharging him, and due to budget cuts, he is keen to secure a lower price than what he is paying now. His Manager has suggested using an e-auction as the procurement method.

Is this the correct way forward?

Yes- an e-auction is an electronic system so it will be easy for David to compare bids

Yes- an e-auction will allow David to secure the lowest possible price

No- a reverse e-auction would be more suitable as it will secure the lowest price

No- a reverse e-auction will ensure only high quality suppliers bid for the opportunity

20. George is running a competition to find a supplier to install solar panels on the roof of his factory. The energy this produces will power some of the machines. Cost is an important factor, but there are also other considerations that are important such as how long the solar panels will last, and the maintenance costs if they ever break .

What should George do?

Use a weighted award criteria

Only invite suppliers he knows will be able to provide good quality products which won’t break

Run a separate tender for a company who can provide reactive maintenance to the solar panels

Evaluate the bids on price only as this is an important factor

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21. Danny is procuring a new IT software, which he doesn’t know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay .

What should be Danny’s next step?

Issue a RFI

Issue a RFQ

Issue an ITT

Issue an OJEU

22. The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability .

How should the procurement manager include the CEO in the procurement activity?

It is important to keep the CEO informed of all decisions that are made

It is important to keep the CEO satisfied as he runs the business

The CEO is a key player- so it is important he is involved early in the process

The CEO is a key player- so should be given regular updates on progress

23. Which of the following factors would you use to analyse the macro-environment? Select THREE.

social

cultural

political

philosophical

legislative

24. A manufacturing company which produces showers struggles to get hold of a certain part called a mixer valve. It is impossible to make the showers without the mixer-valve and there is only one supplier in the market that produces them. The good news is they aren't very expensive to buy .

What type of supplier is the supplier of mixer valves?

leverage

strategic

routine

bottleneck

25. Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?

Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise

Yes- mediation means the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues

No- it would be better to solve the disagreement in-house

No- mediation could have a negative impact on the companies’ reputation

26. The Queen Victoria is a traditional British pub which serves a range of alcoholic beverages. It has a partnership relationship with a local brewery which supplies several types of beer and cider. Logistics is a key concern for the Queen Victoria as deliveries must be made when there is room in the cellar to store the barrels of beer and cider. In what ways could the logistics risk be reduced?

Using several suppliers instead of one

Batch ordering

Sharing up-to-date information

Issuing POs electronically.

27. Which of the following are advantages for the buyer of entering into a partnership? Select

TWO.

They are likely to be able to gain price stability

There may be greater continuity of supply

They will gain an increased volume of business

The supplier may become complacent

28. According to Mendelow, there are four ways stakeholders can be managed, depending on the amount of power they have, and how interested they are in your project .

What are these four categories?

Keep satisfied, keep informed, minimal effort, no effort

Manage closely, manage loosely, keep satisfied, keep informed

Minimal effort, manage closely, keep informed, keep satisfied

Keep informed, keep happy, keep satisfied, keep notified

29. What is the correct order of the stages of team development?

Forming, storming, norming, performing

Forming, norming, performing, storming

Storming, forming, performing, norming

Storming, forming, norming, performing

30. Victoria runs a hotel and has recently had several security issues such as attempted robberies. She has decided that she needs to hire a security firm to ensure these issues don’t continue. She has done some research and has found there are several local security firms who may be able to provide services to her hotel. However, she hasn’t decided exactly what she would require the security firm to do .

What should be Victoria’s next steps?

Issue a Request for Proposal

Issue an Invitation to Tender

Issue a Request for Quotation

Issue a Prior Information Notice